Nehemia, you are 100% correct and it is something that has frustrated me for years. But Israel is hardly unique in this regard. The same is largely true in the U.S., Europe and elsewhere. And even where truly liberal parties are on offer, they quickly morph into parties of interests. One would think that there would be a large and strong constituency for liberalism (which is in fact what you are calling for) but it just doesn't seem to materialize. Perhaps because those of us in this camp aren't actually advocating our narrow personal interests except in the long run, and so we don't have as much at stake, and in some cases, the policies we advocate may even harm us (such as progressive but non-distorting taxes, cutting entitlements and transfers, eliminating subsidies, and getting out of the territories which will increase land and housing costs inside Israel). But this still doesn't explain why there is not even a single viable party or political voice of liberalism. I'll have to content myself with continuing to find comfort in your articles my Economist weekly newspaper.
Second rocket fired from Gaza explodes inside Strip (Haaretz)
from the article: The party that doesn't exist